Anyone interested in Essent Group Ltd. (NYSE:ESNT) should probably be aware that the Senior VP, Mary Gibbons, recently divested US$314k worth of shares in the company, at an average price of US$67.04 each. However, the silver lining is that the sale only reduced their total holding by 2.0%, so we're hesitant to read anything much into it, on its own.

The Last 12 Months Of Insider Transactions At Essent Group

The Founder, Mark Casale, made the biggest insider sale in the last 12 months. That single transaction was for US$6.7m worth of shares at a price of US$65.23 each. So what is clear is that an insider saw fit to sell at around the current price of US$64.42. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

In the last year Essent Group insiders didn't buy any company stock. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like Essent Group better if I see some big insider buys.

Does Essent Group Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Essent Group insiders own about US$211m worth of shares (which is 3.5% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Essent Group Insiders?

Insiders haven't bought Essent Group stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. But since Essent Group is profitable and growing, we're not too worried by this. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we've found that Essent Group has 2 warning signs (1 shouldn't be ignored!) that deserve your attention before going any further with your analysis.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.